The two-faced period continues in the cryptocurrency segment, with BTC still performing much better than the major altcoins. Bitcoin got close to $7800 today in early trading, maintaining its breakout while Ethereum, Ripple, and most of the top coins are under clear selling pressure. The technical setup hasn’t changed through the weekend, as trading volumes fell significantly and the sudden spikes which occurred regularly in the past few weeks were absent.
The total value of the market is stuck just above $280 billion, as Bitcoin’s rise is likely fueled by capital redistribution rather than meaningful inflows. That said, the largest coin maintained the short-term buy signal, holding up above the $7350 support level, and given the negative sentiment that developed in recent months could help in a more durable rally, even if the segment as a whole is still suspiciously weak.
BTC/USD, 4-Hour Chart Analysis
Bitcoin confirmed a short-term uptrend by the move above the $7650 level today in early trading, but for now, the momentum of the move is weak, and the $7800 resistance proved too strong for the coin. The overbought momentum readings were mostly cleared during the weekend, and BTC remained well clear of the line-in-the-sand $7000 level, and formed a swing low near $7350.
Our trend model is still on a buy signal with regards to BTC, but because the weakness in altcoins and the lack of a broader leadership, traders shouldn’t enter full positions here. Further support below $7000 is found at $6750 and $6500, while resistance is ahead at $8450 and $8800.
Selling Pressure Apparent in Altcoins
ETH/USD, 4-Hour Chart Analysis
Ethereum has been trading in a narrow range ever since briefly dipping below the $450 support level on Friday. Despite the low volatility environment the coin failed to rally substantially, remaining well below the $500 level, leaving the failed breakout pattern intact, which suggests at least a test of the $400-$420 zone in the coming period. Resistance above $500 is ahead between $555 and $575, while further support is found at$380 and $360.
XRP/USDT, 4-Hour Chart Analysis
Adding to the worries of crypto bulls, Ripple is in an even weaker short-term technical position than ETH, trading just above the structurally important support zone near $0.42. The coin spiked down to the June low on Friday, but for now, a breakdown has been avoided, although the coin failed to show bullish momentum during the weekend bounce. The hovering near the $0.45 support/resistance level, with the next levels of interest ahead at $0.49 and $0.51, but for now bears are clearly in control of the market of XRP.
EOS/USDT, 4-Hour Chart Analysis
On another negative note, EOS, which has been one of the leaders of the spring rally is still stuck in a clear short-term downtrend the coin failed at the key $9 level last week, and it seems to be ready to test the support zone near the June and July lows between $6.5 and $7.25. A move above $9 would be a very positive sign, but for now, the coin remains on a short-term sell signal.
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